River Road Supply had a beginning inventory of $150,000 on January 1, 2024. During the year, the company had net purchases of $800,000 and net sales of $750,000. The company historically maintains a 35% gross profit ratio. Using the gross profit method, calculate River Road's estimated ending inventory balance.

River Road Supply had a beginning inventory of $150,000 on January 1, 2024. During the year, the company had net purchases of $800,000 and net sales of $750,000. The company historically maintains a 35% gross profit ratio. Using the gross profit method, calculate River Road's estimated ending inventory balance.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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